The largest utility companies in the United States are warning that the country is facing a surge in demand for electricity unprecedented in decades. The inability to quickly increase electricity production could jeopardize the economy of the United States.
After more than a decade of predominantly steady growth in demand for electricity, demand could sharply rise by 2030. The reasons for this will be the excitement surrounding artificial intelligence, expansion of semiconductor production, and electrification of the automotive fleet.
According to a report published by the consulting company Rystad Energy, only the growth of data centers to support artificial intelligence and the introduction of electric vehicles will increase electricity demand by 290 TWh by the end of the decade.
Energy company NextEra expects electricity demand in the United States to grow by 38% over the next two decades, which is four times the annual growth rates of the past 20 years. A significant portion of the demand will be met by renewable energy sources and battery storage.
Nuclear energy and natural gas will be crucial at a time when wind and solar energy, which still face challenges in delivering electricity in adverse weather conditions.
"Nuclear energy must be a significant part of this mix ... as we move forward to ensure that we have the power, energy, and electricity needed for this economy," says Southern Company CEO Chris Womack. According to him, the US needs over 10 GW of new nuclear energy to reliably meet demand while achieving climate goals.
"We will need to consider natural gas and possibly even additional technologies, whether small modular reactors or hydrogen, if we are going to address this," noted Dominion Energy CEO Robert Blue.
Blue also warned that increased electrification makes people even more dependent on the power grid. This makes its security crucial for the country's future.
Source: CNBC
Comments (0)
There are no comments for now